TM Roh, the top of Samsung’s cellular enterprise, talked concerning the firm’s new merchandise on the Galaxy Unpacked occasion in Paris, France on July 10, 2024. Samsung unveiled a slew of recent merchandise together with foldable smartphones, new smartwatches and the Galaxy Ring.
Arjun Kharpal | CNBC
In a swanky downtown Paris resort, Samsung Electronics’ cellular boss sat behind a collection of the tech big’s newest merchandise, starting from foldable smartphones to the model new good ring — underscoring how the South Korean agency is seeking to lock clients into its world of merchandise to drive gross sales.
TM Roh is the person tasked with bringing Samsung, the world’s largest smartphone maker, into the unreal intelligence period.
In a wide-ranging interview with CNBC at that Paris resort earlier this month, Roh laid out Samsung’s imaginative and prescient for Galaxy AI, its suite of synthetic intelligence options, how the corporate is considering getting cash off software program and about future merchandise, equivalent to blended actuality headsets.
Galaxy AI push
These embody options like interpreter, which might translate spoken language between two individuals, and the Notes app that may document audio, transcribe and summarize what has been mentioned or famous down.
AI has turn out to be the important thing focus for Samsung this 12 months, because the agency appears to drive gross sales to its premium handsets at a time when customers are holding onto their telephones for longer and stay cautious on spending.
“We’re reinforcing and bringing extra AI capabilities to our merchandise. As customers use extra AI capabilities, they will really really feel the comfort and advantages they create,” Roh advised CNBC in Korean translated by an organization translator.
“I consider strongly that these Galaxy AI, cellular AI are robust motivation and driver for buy of recent merchandise,” he added.
“Galaxy AI is right here” was the slogan plastered throughout posters on the location of the Galaxy Unpacked launch — the Carrousel du Louvre, a shopping mall and occasions house close to the well-known Louvre museum in Paris.
It highlights Samsung’s advertising blitz to inform customers that its telephones now have AI capabilities, because it appears to fend off Apple’s AI push. The U.S. know-how big introduced Apple Intelligence in June, however this set of AI options will not begin rolling out till fall, and there are lots of areas the place it will not be avaialable, equivalent to in China.
Nonetheless, many analysts do not anticipate these early AI apps alone to drive new telephones gross sales.
Roh anticipates the know-how will develop over the long term.
“When you concentrate on when first smartphones and the web got here to being solely a handful of individuals … used smartphones and web. However as they progress, as they turn out to be extra superior, they grew to become extra pervasive in day-to-day lives. And I feel [the] similar applies to cellular AI as nicely,” Roh mentioned.
Monetizing AI
Income in Samsung’s cellular enterprise has traditionally come from gross sales of varied smartphones and different units. This stands in distinction to Apple, which, on high of cashing in iPhone income, makes billions of {dollars} from its software program and providers.
That is as a result of Samsung’s telephones run Google’s Android working system, which implies Samsung has much less management of its software program and of the flexibility to push its personal apps. Apple in the meantime owns its proprietary iOS working system.
Apple’s App Retailer and the Google Play Retailer are the 2 dominant app shops of the iOS and Android programs, respectively.
Because it now embarks to infuse its personal apps with AI, Samsung seems to be making an even bigger push into software program, together with an upgraded model of AI assistant Bixby, which is because of launch later this 12 months and is predicated on the South Korean firm’s personal giant language mannequin.
Roh mentioned that customers usually entry totally different software program on cellular by means of app shops. Which may not at all times be the case with AI on units, because the smartphone turns into extra intuitive. Which will give a chance for Samsung’s apps to turn out to be extra outstanding, and Roh mentioned the corporate is bolstering its personal apps.
“We’ll advance our software program and native apps. So we’ll present and improve Samsung software program and apps for customers,” Roh mentioned.
That also would not reply the query of how Samsung will monetize these apps.
When requested about whether or not Samsung would introduce a subscription to its AI providers, Roh mentioned the corporate is “listening to the market and the customers” and recommendation from totally different specialists.
“Subscription will be an choice, and it may well imply the AI options can stay as a core know-how to entice extra customers to purchase the {hardware}. However regardless of the path can be, we’ll make a sensible resolution for the sake of customers and, on the similar time, for the sake of Samsung Cell’s companies,” Roh mentioned.
Future merchandise in foldables and blended actuality
Samsung was one of many pioneers in foldable telephones, introducing its first such machine in 2019. Different firms have adopted swimsuit with their rival merchandise since then.
Roh hinted there might be different items of {hardware} hitting the market sooner or later, as Samsung appears to broaden its ecosystem of merchandise. He mentioned that the {hardware} elements required for foldable smartphones are bettering, as is the related software program.
Requested by CNBC whether or not Samsung would deliver the foldable screens to different units, equivalent to tablets, Roh mentioned, “On the time when the {hardware} completeness and software program and content material integrity, the ecosystem involves full maturity, we’ll be compelled to introduce very satisfying and really nearly good foldable new kind components in new product classes.”
He didn’t specify what these new product classes for foldable screens might be.
Samsung additionally has a so-called blended actuality headset within the works. Blended actuality typically refers to know-how like augmented actuality that’s employed in headsets and permits digital pictures to be superimposed over the true world. Samsung, Google and chip agency Qualcomm struck a partnership to develop a blended actuality headset final 12 months, however no updates concerning the machine have adopted since.
Blended actuality has been thrust into the highlight with the launch of the Apple Imaginative and prescient Professional, the Cupertino big’s first foray into the product class. Roh acknowledged that blended actuality units are “one of many necessary units that may usher in new cellular expertise and new ecosystem.”
He remained tight-lipped about units, however advised CNBC that Samsung will announce a brand new “blended actuality platform” inside the 12 months. That is prone to be a software program providing, in keeping with Roh, although he declined to elaborate.
